S&P puts CeramTec on watch

S&P said it placed its B long-term corporate credit on CeramTec Service GmbH on CreditWatch with negative implications.

S&P affirmed the issue rating on the senior secured debt at B and the recovery rating of 3 is unchanged, indicating expectations for meaningful recovery prospects (50%-70%, rounded estimate 65%) in the event of a payment default.

The agency also affirmed its CCC+ issue ratings on the senior unsecured notes, and the 6 recovery rating is unchanged, reflecting the subordinated position of the debt in the capital structure.

The issue and recovery ratings will be subsequently refinanced and withdrawn when the transaction is executed.

S&P said the CreditWatch placement follows the announcement that private equity sponsor Cinven entered into an agreement with BC Partners to sell CeramTec for €2.6 billion.

“We do not currently have detailed information on the planned transaction and future financial policy,” S&P said in a news release.

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